GetSwift directors will ‘vigorously defend’ ASIC civil lawsuit; shares fall to all-time
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GetSwift (ASX:GSW) burst out of the gates swinging this morning, telling investors it “irrefutably” denied allegations made by ASIC it misled investors and would “vigorously defend” the proceedings.
But shares in the delivery management tech company have fallen to a new all-time low of 29c. That’s a 34 per cent drop on Friday’s close of 45c.
The company was served with a civil lawsuit in the Federal Court by the corporate watchdog after 5pm on Friday, which alleged GetSwift directors Bane Hunter and Joel MacDonald “were either involved in the failure of GetSwift to meet its obligations and failed to discharge their duties to GetSwift with the requisite degree of care and diligence that a reasonable person in their respective positions would exercise”.
But this morning GetSwift tabled a reply with the ASX, saying that it had been cooperating fully with ASIC and received no notice the governing body had decided to commence proceedings.
ASIC has been investigating the company since February 2018 after a Fairfax report alleged the logistics software company had failed to update the market, or their investors, about contract cancellations.
If it is found that Mr Hunter and Mr MacDonald broke the Corporate Act, ASIC will seek that the company pay penalties to the Commonwealth and be barred for managing a business “for such period as the Court thinks fit”.
A court date has been set for March 1.